, 1887-10-26
Pacific Investigation.

EH" tOHhf OSJ- uo L uCluC
railway commission resumed its inquiries
to. day. Its investigations are about to
close, and it was said by the commission
ers that probably the witnesses at this
hearing would be the last called. A tele-
gram from Governor Stanford was read,
in which he desired the appointment of a
court to inquire into the equities existing
between the government and the Central
Pacific. bingham H. Nichols, formerly
treasurer of the central branch OF the Cen
trail Pacific railway, then known as the
Atchison x Pixies Peak railway, was the
first witness.
He detailed the organization and CON
struction of the first hundred miles Of the
AtchisOn Il Pixies Peak railway, and said
he considered hat the road had a perfect
right to consolidate with another road,
and that its grants of land should go to
the road with which it was merged. Wit
ness explained the difficulties they had
experienced IN trying to fulfill govern
ment requirements, and have finally found
it impossible to fully carry out the road.
Only one tenth OF the lands which were
to be granted by the government came to
them. Witness said a statute permitted
the consolidation.
LII lut COuSOiludIlOu Will llC AlCulSOD,
Colorado & Pacific, among the controlling
powers were Oliver Ames, r. NJ. Pomeroy,
Erastus Corning, Chauncey and Henry
Willard, VIM. q. Wetmore, John a.
Stewart, Governor VIM. Clafin and A. S.
Barnes. The road employed among many
others Thos. A. Hendricks and Revrdy
johnson, but not when they were in office.
Before the reorganization. when he came
in, the 400 first mortgage bonds were
Issued to those previously in power, out
he never found the reason for it. This
obligation was made conditional when he
and his friends went into the company.
Witness never received any OF the 400
bonds. The books of the construction OF
the road, known as the Osborne books,
were lost. No other money save the
bonds was disturbed except for compen-
sation. Witness said no bond, nor dollar,
was distributed except for a return, but
bonds were issued in consideration of loans.
If so, 900 was put into the company
for three or tour months a bond would be
given in addition to the interest. About
seventy five bonds were so issued. Gov
ernor Ames kept a memorandum of the
roads transactions in a notebook. Be
tween 1870 and 1878 the road was in a
bad way. La 1879 the first mortgage
bond had to be funded. When witness
and his friends resolved to run the road to
Denver Jay Gould stepped in and paid
$3.50 per share for stock. That was of
little value after the sale was made. Wit
ness, who conducted it, was paid S25, 600
for legal services. Nichols believed the
government should wipe u the accumu
lation OF interest on all claims against he
Pacific railroads, as they have all benefit
ted the public to a great extent. They
could then pay the principal.
When he went to Washington in 1868
to see about the bill for the relief of tie
Central branch, Mr.. Nichols interviewed
the congressman. No money was given
to the congressman, but some was expend
ed in dinners for them at the Arlington.
These were given for the purpose of get
ting acquainted with the members and
talking about the bill, Between January
and July, 1880, 81, 344 was expended for
such Incidental expenses. William M.
Evarts was paid a fee of $1,000. Two
Items Of 81, 900 which were charged
against him, Nichols said, were probably
for some political operations Of Mr.. Pom
eroy. Nichols SAID any differences from
the books Of the central branch to the
effect that he had not paid full value for
all stock issued to him were incorrect. He
paid first at the rate of 500 a share and
atterward $40 a share. The books show
ing that for l,6l6 shares of stock issued
at one time, and 1879 shares at another, he
had only paid So, 100 to the company,
could not be I'll ht.
He believes he bad 90I shares of his
own and 1Ol shares of his fathers estate,
part of which he transferred to Oliver
Ames. Nichols said that he paid at the
rate of 500 per share on stock received.
He did not understand why the books
did not show any payment by him for 1879
shares at one time, nor could he explain
why he should pay its par value while
stock was selling as low as fifty cents on
the dollar.
Commissioner Anderson astonished wit
ness by asking him what had become of
Sl3l 600 charged against him on the
books. Witness thought it must have
been for incidental expenses. Witness
thought the Central branch was not en-.
titled to government lands 100 miles be-
yond the terminus of the road. Did not
believe the fact that they had not carried
the road that distance made any difference.
They had filed their maps and were ex-
onerated from a continuance of the road.